Business Under Pressure: Every Fourth Individual Entrepreneur Plans to Close.

27% of entrepreneurs plan to close in the near future

According to a survey by Opendatabot, about 27% of entrepreneurs in Ukraine plan to close their businesses in the near future. Of this number, 7% plan to close within the current year, while 20% - in the next year. The study covered 31,694 respondents who operate as individual entrepreneurs.

Based on the survey results, it was found that the majority of entrepreneurs planning to close their business, i.e., 62%, indicate that this is related to the increase in taxes. Another 19% of entrepreneurs noted problems arising in the business as the reason for closing. It is worth mentioning that the process of closing a business is complicated or becomes impossible due to hacker attacks on state registries.

According to the survey, among the respondents who are individual entrepreneurs, the largest number of enterprises planning to cease their activities belong to the retail sector - 24.6%, while 21% are engaged in the IT sphere.

Recently, a law was passed introducing a military tax for small and medium businesses. This implies that from the moment of signing this law, there are 2 closures for each new individual entrepreneur. From the moment the law was signed until December 17, 24,497 entrepreneurs ceased operations, while only 10,947 new firms opened. Compared to the previous year, there was 1 new individual entrepreneur for every 4 closures last year.